HB713 Alabama 2012 Session

Summary

Primary Sponsor

Joseph C. Mitchell

Democrat

Co-Sponsors

Dexter GrimsleyNapoleon BracyJim BartonSteve McMillanAlan BakerChad FincherJoe FaustHarry ShiverVictor GastonRandy DavisJames E. BuskeyThomas JacksonDavid Sessions

Session

Regular Session 2012

Title

Insurance Department, required to collect information from insurance companies on homeowners insurance policies and premiums and post aggregate information on website, penalties for insurance companies not in compliance, Property Insurance Clarity Act

Summary

HB713 would require homeowners insurers in Alabama to report policy and premium data to the Department of Insurance, which would publish aggregate data and rate-making details on its website, with penalties for noncompliance.

What This Bill Does

Insurers authorized to transact homeowners insurance must annually submit data on direct incurred losses, number of policies written, and direct earned premiums for the prior year, by ZIP code (including certain policy types and excluding others). The Department of Insurance will aggregate these figures across all companies and post the totals by ZIP code, along with a general description of the rate-making methodology, on its website. Penalties exist for noncompliance, including a possible delay waiver, a 90-day compliance window, and a $2,500 per month fine if not met, with funds going to the State General Fund. Data submitted is confidential as a trade secret until aggregated, after which it may be published; notice is required before any ordered disclosure, and the act has an effective date tied to Governor approval.

Who It Affects

• Insurance companies authorized to transact homeowners insurance in Alabama: must annually report policy and premium data by ZIP code and may face penalties or waivers for noncompliance.
• Alabama Department of Insurance: collects, aggregates, and publishes data and rate-making methodology; enforces reporting requirements and penalties.

Key Provisions

• Creates the Property Insurance Clarity Act and requires insurers to report homeowners policy and premium data to the Department of Insurance by ZIP code for the prior year, including policy types such as homeowners, condo, dwelling fire, renters, and mobile/manufactured housing; excludes creditor-placed and condo association insurance.
• The department will aggregate data across all insurers and post yearly totals by ZIP code, and publish a comprehensive description of the rate-making methodology used for homeowners risk and related data on its website.
• Reporting starts with 2007 data and October 1, 2013 deadline for initial submissions; voluntary pre-2007 submissions are allowed and will be posted; aggregate totals by year will be posted by January 30 following the year data.
• Penalties: the commissioner may waive or modify reporting for good cause; failure to comply results in notice and 90 days to comply, and if not compliant, a $2,500-per-month fine until compliance (funds go to the State General Fund).
• Confidentiality: submitted information is protected as a trade secret and kept confidential; aggregated data may be released; no release of confidential information without a court order, with 10 days’ notice before disclosure.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance Department